Supernus Pharmaceuticals, Inc. 2026 Q3 Earnings Call

Good afternoon, everyone, and thank you for joining us today for Supernus Pharmaceuticals' third quarter 2026 financial results conference call. Today, after the close of the market, the company issued a press release announcing these results. On the call with me today are Supernus' Chief Executive Officer, Jack Khattar, and Chief Financial Officer, Tim Dec. Today's call is being made available via the investor relations section of the company's website at ir.supernus.com. Before we begin, I'd like to remind you that we will be making forward-looking statements. All these statements are based on the beliefs and expectations of management as of today. Actual events or results could differ materially.

We refer you to the documents we and Indivior Pharmaceuticals have filed with the SEC, including in periodic reports under the heading Risk Factors, which identify important factors that could cause actual results to differ materially from those expressed by the company verbally, as well as statements made within this afternoon's press release. This call is being webcast live, and a link can be found at the Supernus website at ir.supernus.com, and a replay will be made available shortly after this call is concluded. I'll now turn the call over to Jack.

Thank you, Peter. Good afternoon, everyone, and thanks for taking the time to join us on today's call. Today, we will focus on Supernus' strong 2026 third quarter and year-to-date results, which show the continued momentum across our commercial portfolio, specifically our growth products. After walking through these results, I'll provide a brief update on our transformative merger with Indivior Pharmaceuticals. For the third quarter of 2026, combined revenues of our growth products, Qelbree, ZURZUVAE, ONAPGO, and GOCOVRI, increased by 43% compared to the same period last year. Starting with Qelbree in the third quarter, prescriptions as reported by IQVIA grew by 18% over the third quarter of 2025, outpacing the 10% growth in the ADHD market. Net sales were $91 million in the third quarter, representing a 12% increase over last year.

Similarly, for the nine months ended September 30, 2026, Qelbree achieved robust growth of 18% in prescriptions and 15% in net sales compared to the same period last year. Net sales for the nine-month period reached an all-time high of $258 million. Qelbree's growth over the last year continues to come from both patient populations, with third quarter adult prescription growth of 25% and pediatric prescription growth of 16%. In addition, the total quarterly number of prescribers for Qelbree reached a high of approximately 46,000. Moving on to ONAPGO, during the third quarter of 2026, ONAPGO generated net sales of $17.1 million, up 27% compared to the second quarter of 2026. Demand for the product continued to be healthy, with more than 400 enrollment forms submitted in the quarter. In the third quarter of 2026, prescriptions grew by 17% compared to the second quarter of 2026.

As we announced last week, the FDA has recognized seven years of orphan drug exclusivity for ONAPGO for the treatment of motor fluctuations in adults with advanced Parkinson's disease. This designation validates the urgent need for targeted therapies and helps safeguard convenient innovation in a long-underserved community. In addition, we submitted a supplemental new drug application to the FDA for second source of supply, with approval expected by mid-year 2027. Switching to ZURZUVAE, Supernus reported $42 million in collaboration revenues in the third quarter and $105 million for the nine months period year to date. Full third quarter 2026 U.S. ZURZUVAE sales, as reported by Biogen, increased approximately by 53% compared to the same period in 2025. In the third quarter of 2026, ZURZUVAE saw strong growth in demand with written prescriptions growing 43% and the number of prescribers growing 42% compared to the same period last year.

Since launch, 87% of the prescriptions have come from repeat prescribers, and more than 43,000 patients have been treated with ZURZUVAE. Switching now to GOCOVRI for the third quarter, the brand grew 4% in net sales and in prescriptions compared to the same period last year. Net sales reached an all-time high of $43 million in the third quarter. Moving on to R&D, the SPN-820 and SPN-817 phase IIb studies continue to enroll subjects with major depressive disorder and focal seizures, respectively. The SPN-443 program is expected to start a phase I single ascending and multiple ascending dose study in adult healthy volunteers by the end of 2026. Now turning to the status of our transformative merger with Indivior Pharmaceuticals. I'm pleased to report that Supernus and Indivior shareholders voted to approve the merger on October 15, and we expect this transaction to close on November 2.

As you may have seen earlier today, Indivior's results for the three months and nine months ended September 30, 2026, were also strong and driven by continued record performance of SUBLOCADE. Combined with Supernus' solid performance and outlook, the new company will be starting from a position of strength with significant earnings and cash flow potential. The combined company will have a commercial portfolio of 11 differentiated medicines across psychiatry, neurology, and addiction, with key growth products currently expected to continue growing well into the 2030s. In addition, we will have the profitability, cash flow generation, and financial capacity to pursue further growth opportunities, including driving growth in our existing commercial portfolio, advancing our novel pipeline, and pursuing future business development. Our near-term priorities are to work through the integration of the two companies, ensure that our key growth drivers remain on track, and to progress our pipeline.

Integration planning has been underway, and we remain confident in capturing the $125 million of expected annual cost synergies that we previously discussed. With this merger on the verge of closing, we are entering an exciting new chapter that builds on a strong foundation. We expect to provide combined full-year 2027 guidance in February during the release of fourth quarter and full-year 2026 results. With that, I will now turn the call over to Tim.

Thank you, Jack. Good afternoon, everyone. As I review our third quarter 2026 results, please refer to today's press release and 10-Q that was filed earlier today. We achieved record total revenue of $226.8 million for the third quarter of 2026, an increase of 18% compared to the same quarter last year. Total revenue in the third quarter of 2026 was comprised of net product sales of $178.6 million, collaboration revenues associated with ZURZUVAE of $41.7 million, and royalties, licensing, and other revenues of $6.5 million. Please note, collaborative revenues represent approximately 50% of the sales of ZURZUVAE reported by Biogen. The increase in total revenues was primarily due to the increase in net sales of our growth products, Qelbree, GOCOVRI, ZURZUVAE, and ONAPGO. For the third quarter of 2026, combined R&D and SG&A expenses were $153.8 million, as compared to $209 million for the same quarter last year.

Operating earnings on a GAAP basis for the third quarter of 2026 was $21.2 million, as compared to an operating loss of $60.2 million for the same quarter last year. The change was primarily due to the acquisition-related cost for the Sage acquisition in the third quarter of 2025, partially offset by higher revenues. GAAP net earnings was $20.9 million for the third quarter of 2026, or $0.35 per diluted share, compared to a GAAP net loss of $45.1 million, or a loss of $0.80 per diluted share in the same quarter of last year. On a non-GAAP basis, which excludes amortization of intangibles, share-based compensation, contingent consideration, and depreciation, adjusted operating earnings for the third quarter of 2026 was $55.2 million, compared to $41.9 million in the same quarter of prior year. Total revenues for the first nine months of 2026 were $653.5 million.

Excluding net product sales of Trokendi XR and Oxtellar XR, total revenues for the first nine months increased 37% compared to the same period last year. Total revenues were comprised of net product sales of $495 million, ZURZUVAE-related collaboration revenues of $104.7 million, and royalty licensing and other revenues of $53.8 million. Combined R&D and SG&A expenses for the nine months ending September 30, 2026, were $481.5 million, as compared to $444.6 million for last year. The increase was primarily due to an increase in SG&A expenses associated with the collaboration agreement with Biogen. Operating loss on a GAAP basis for the first nine months was $45.1 million, as compared to an operating loss of $58.3 million for 2025.

GAAP net loss was $39.8 million for the first nine months, or a loss of $0.69 per diluted share, compared to a GAAP net loss of $34.4 million, or $0.61 per diluted share in 2025. On a non-GAAP basis, which excludes amortization intangibles, share-based compensation, contingent consideration, depreciation, and acquisition-related costs, adjusted operating earnings for the first nine months were $115.2 million, compared to $110.2 million for the same period last year. As of September 30, 2026, the company had approximately $359 million in cash equivalents, and marketable securities, compared to $309 million as of December 31, 2025. Now turning to guidance. For full year 2026, the company, on a standalone basis, is raising its financial guidance for total revenue and non-GAAP operating earnings.

As such, we now expect full year 2026 total revenues to range from $875 million to $900 million, up from the previous guidance of $860 million to $890 million. And finally, we expect full year 2026 non-GAAP operating earnings to range from $160 million to $180 million, up from $150 million to $180 million. Assuming the merger with Indivior closes on November 2, this financial guidance will no longer apply. In terms of the merger, we are extremely excited about the closing of this transformative merger. Since we announced the deal in early August, a tremendous amount of work has been done on planning the integration of the two companies, and we are ready to begin executing that plan next week. As Jack mentioned, we are not providing 2027 guidance today, but we do expect to do that in February of 2027.